MNE3704 Assignment 2 (QUALITY ANSWERS) Semester 1 2026

This document provides detailed workings, clear explanations, and well-structured solutions for the MNE3704 Assignment 2 (QUALITY ANSWERS) Semester 1 2026 ... Question 1 Read the case study below and answer the questions that follow. Case Study: The Mokoena Family Enterprise The Mokoena family owns Mokoena Agro-Processing (Pty) Ltd, a medium-sized enterprise based in Gauteng, South Africa. Established in 2005 by Mr. Thabo Mokoena, the business produces packaged agricultural goods for local and regional markets. Over time, the business has grown significantly and now employs 85 workers. Recently, Thabo has begun transitioning leadership to his children: • Lerato (35) – Operations Manager (structured, process-driven) • Kabelo (32) – Sales & Marketing Director (risk-taking, innovative) • Naledi (28) – Finance Manager (analytical, cautious) The family also includes Mrs. Mokoena, who informally influences decisions but holds no formal position. Emerging Challenges 1. Family Dynamics and Zero-Sum Behaviour Sibling rivalry is increasing. Kabelo feels that Lerato dominates decision-making, while Naledi often sides with Lerato due to shared caution. Kabelo perceives this as a “zero-sum game”, where his success is their loss. 2. Cultural Expectations The Mokoena family follows strong African cultural values, including: • Respect for elders • Collective decision-making • Gender role expectations These norms create tension, especially as Lerato (a woman) holds operational authority over her younger brother. 3. Operational Impact Conflicts have begun affecting the business: • Delayed decision-making • Staff confusion due to inconsistent instructions • Reduced productivity in key departments 4. Lack of Formal Governance There is: • No formal succession plan • No family constitution • No structured family meetings Most decisions are made informally during family gatherings. 5. Emotional Tensions Unresolved emotional issues include: • Feelings of favoritism • Lack of trust • Poor communication Questions: SECTION A: SHORT QUESTIONS (Knowledge & Understanding) 1.1 Define family dynamics in the context of family businesses. (1) 1.2 Explain the concept of a zero-sum game and how it applies to the case. (2) 1.3 What is family systems theory? How does it affect the given case? (2) 1.4 Define emotional intelligence in a family business context of the Mokoea’s? Explain how it was handled. (2) 1.5 Describe two consequences of poor conflict management in the case study. (2) 1.6 What is the purpose of a family constitution? How can it assist the siblings? (3) 1.7 Identify two operational challenges faced by the Mokoena business and suggest how can they overcome them. (4) [13] SECTION B: APPLICATION QUESTIONS (Analysis & Evaluation) 1. Family Dynamics and Culture Analyse how family dynamics and cultural expectations create complexity in the Mokoena business. (3) 2. Impact on Strategy and Operations Evaluate how family conflict is affecting: • Strategic decision-making • Daily operations (4) Provide examples from the case. 3. Family Systems Theory Discuss how family systems theory can be applied to improve relationships and decision-making in the Mokoena family. (3) 4. Emotional Intelligence Examine the importance of emotional intelligence in resolving tensions within the Mokoena family. (7) 5. Family Meetings and Interaction Critically discuss how structured family meetings could improve governance and communication in the business. (10) [27] Total for question 1: 40 Question 2 No Questions: 2.1 Analyse the ownership-related challenges currently affecting the Mahlangu family business. (2) 2.2 Clearly distinguish between ownership roles, management roles, and family roles in your discussion. (6) 2.3 Critically discuss the primary responsibilities of shareholders towards the corporation they own. (4) 2.4 Identify and explain the current ownership structure at Mahlangu Holdings and analyse the effectiveness of this ownership structure at the second-generation stage. (4) 2.5 Evaluate the likely consequences if the business transitions into a third-generation ownership structure without formal governance reforms. (4) 2.6 The Mahlangu family is considering the offer from a private equity firm to acquire 40% of the business. (10) Advise the family on whether this option should be accepted, considering the following: • Family control • Governance and professionalism • Long-term ownership sustainability